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Quote on Morning Market 26 December 2022 By Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

"The market sell off on Friday was the consequence of the cumulative impact of Covid fears, valuation concerns and margin calls in many momentum stocks. It is important to note that the 320 point cut in Nifty was caused on a day when DIIs bought heavily for Rs 3398 crores and FIIs sold only for Rs 706 crores. This means the selling was triggered by HNIs and retail which, in turn, triggered margin calls in momentum stocks that led to steep cuts in these segments. Heavy FII selling in call options in the derivatives segment indicate that recovery will be slow and tough. Long term investors can nibble at high quality stocks in capital goods, telecom, banking and pharma."

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